Compensation matters

    24 April 2015

    To the Point - FASB proposes simplifying financial reporting by employee benefit plans
    The FASB issued a proposal that would simplify certain aspects of employee benefit plan accounting, while satisfying the needs of users of financial statements, including participants and the Department of Labor. The proposal, which was developed by the Emerging Issues Task Force, would simplify the measurement of fully benefit-responsive investment contracts and disclosures about plan investments. It also would allow plans with fiscal years that don’t end at the end of a calendar month to choose a simpler way of measuring their investments and investment-related accounts. Comments are due by 18 May 2015.

    16 April 2015

    To the Point - FASB allows employers to simplify measurement date for defined benefit plan assets and obligations
    The FASB issued final guidance that allows employers with fiscal year ends that do not coincide with a calendar month end to make an accounting policy election to measure defined benefit plan assets and obligations as of the end of the calendar month closest to their fiscal year ends. Employers that make this election must apply the alternative measurement date to all defined benefit plans. The guidance also allows all employers to elect to remeasure defined plan assets and obligations in interim periods at the closest calendar month end to an event that triggers the remeasurement.

    18 December 2014

    To the Point - FASB to propose more ways to simplify accounting for employee share-based payments
    The FASB tentatively decided to propose two practical expedients that private companies could use to simplify their accounting for share-based payments to employees. For both public and private companies, the Board also tentatively decided to align the classification guidance for put and call rights that are contingent on an event within an employee’s control.

    9 December 2014

    Comment letter – FASB proposal to simplify the measurement date of an employer’s defined benefit obligation and plan assets
    In our comment letter, we supported the FASB's effort to address the cost and complexity for employers with fiscal year ends that do not fall on the end of a calendar month by providing a practical expedient to measure their defined benefit obligations and plan assets as of the end of the month closest to their fiscal year ends. We also recommended that the Board provide the same practical expedient for employee benefit plans.

    30 October 2014

    To the Point - Benefit plan sponsors may need to consider new mortality tables in making year-end assumptions
    The Society of Actuaries finalized new mortality tables and a new mortality improvement scale that could increase a sponsor’s benefit obligations and contributions. Although sponsors are not required to use the tables or the improvement scale, they may need to consider the new mortality information when developing year-end mortality assumptions. Our To the Point publication tells you what you need to know about the final mortality tables.

    9 October 2014

    To the Point - FASB launches project to simplify share-based payment accounting
    The FASB added a project to its agenda on the accounting for share-based payments for both public and private entities. At the same meeting, the FASB made tentative decisions on the accounting for an employee’s use of shares to satisfy the employer’s minimum statutory income tax withholding obligation, forfeitures, income taxes when awards vest or are settled and the presentation of excess tax benefits on the statement of cash flows. Our To the Point publication tells you what you need to know about these developments.

    14 August 2014

    Technical Line - GASB proposes changes in accounting for other postemployment benefits
    The GASB has proposed changing how state and local governments calculate and report the costs and obligations associated with defined benefit other postemployment benefit (OPEB) plans. Government employers would have to record an OPEB liability in their accrual-basis financial statements for defined benefit plans in a manner more similar to private sector entities. The proposal would make a government’s obligations more transparent, and many governments would likely report a much larger OPEB liability than they do today. Our Technical Line publication analyzes the proposed guidance and highlights key changes from current practice.

    15 July 2014

    Financial Reporting Developments - Share-based payments
    We have updated our Financial Reporting Developments publication on share-based payment to reflect the FASB’s ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, and to clarify and enhance our interpretative guidance. Refer to Appendix F of the publication for a detailed list of these updates.

    19 June 2014

    To the Point - Awards with targets that affect vesting and that could be achieved after the requisite service period
    The FASB issued guidance that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition. Our To the Point publication tells you what you need to know about the new guidance.

    15 May 2014

    To the Point - New mortality tables proposed: longer lives could mean higher benefit plan obligations
    The Society of Actuaries has proposed new mortality tables for benefit plan sponsors to use when measuring their benefit plan costs and obligations. If and when the proposal is finalized, sponsors would need to consider the changing trends in life expectancies when determining their best estimate of the mortality rate for measuring defined benefit plan costs and obligations. Our To the Point publication tells you what you need to know about the new mortality tables.

    23 August 2012

    Technical Line - Most governments will soon record costs of their pension plans earlier
    The GASB issued a new standard that will significantly change how government employers account for the cost of defined benefit pension plans. Our Technical Line publication tells you what you need to know about the standard.

    13 June 2012

    Technical Line - Supreme Court ruling on health care law could affect financial reporting
    The US Supreme Court is expected to rule by the end of June on the constitutionality of the health care law. The financial reporting consequences may be significant, depending on what the Court decides and a company’s operations. The timing of the ruling could make second-quarter financial reporting challenging. Our Technical Line summarizes these possible consequences.

    22 September 2011

    To the Point - Companies that participate in multiemployer plans will have to disclose more
    The FASB issued an ASU that requires companies participating in multiemployer pension plans to disclose more information about their involvement in those plans. The new disclosures will be required this year for calendar year-end public companies and will be deferred for one year for nonpublic entities. Our To the Point publication summarizes what you need to know about the new requirements.

    14 July 2011

    To the Point - Government pension rules face possible overhaul
    The GASB proposals would require governments to report more prominently in their statements of financial position net pension liabilities that, in many cases, would be larger than what they currently report. Our To the Point publication summarizes what you need to know about the GASB proposals.

    16 June 2011

    To the Point - US perspective on IFRS amendments to employee benefit accounting
    The IASB today finalized amendments to International Accounting Standard (IAS) 19, Employee Benefits. While this was not a joint project with the FASB, the IASB’s amendments to IAS 19 may serve as a starting point for future changes to accounting for pension and other postretirement benefits under US GAAP. Our To the Point summarizes the rule from a US perspective.

    9 June 2011

    Technical Line - Avoiding ‘cheap stock’ issues
    Our Technical Line reminds companies of the importance of having contemporaneous independent valuations to support share-based compensation cost recorded in the 12 months before an IPO.

    12 November 2010

    Hot Topic - Health care reform: year-end accounting considerations for postretirement health care plans
    Our Hot Topic highlights some of the accounting considerations for sponsors of postretirement health care plans, including the effects of the new health care legislation.

    31 August 2010

    Hot Topic - FASB Issues proposed ASU on disclosure about an employer’s participation in a multiemployer plan
    Our Hot Topic summarizes the FASB proposed ASU that would enhance the disclosure requirements for participants in multiemployer pension plans.

    23 June 2010

    Health care reform: A summary of accounting considerations
    Our publication provides a summary, in one location, of previously published key accounting considerations resulting from the health care reform legislation..

    14 May 2010

    Hot Topic - Health care reform: limitations on compensation deductions
    The new health care legislation includes a provision to limit the deduction for compensation paid to all officers, employees, directors and other workers who provide services for a covered health insurance provider to $500,000 regardless to whether such compensation is paid during or subsequent to the taxable year. Our publication provides a brief overview of the limitation and financial reporting considerations for share-based compensation.

    14 April 2010

    Hot Topic - Accounting for income taxes: changes in Medicare Part D and the Reconciliation Act
    As discussed in our Hot Topic, 0n 14 April 2010, the staff of the SEC’s Office of the Chief Accountant announced that they would not object to a registrant accounting for the effects of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 together. For calendar year and quarter end entities, this announcement should not change the accounting for the Acts. However, entities that have a period end between the enactment dates of the Acts likely are affected by the SEC staff’s announcement.

    14 April 2010

    Hot Topic - Accounting for postretirement health care plans: The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010
    In March 2010, President Obama signed into law historic health care legislation. The new legislation will likely affect the cost of providing health care benefits for retirees. Our Hot Topic discusses the accounting for postretirement health care plans under the Act.

    25 February 2009

    Hot Topic - Accelerated vesting of stock options
    Our Hot Topic describes the accounting considerations associated with the accelerated vesting of an out-of- the-money stock option as well as certain views on the related accounting as shared with us by the SEC staff.

    31 December 2008

    Hot Topic - FASB issues FSP 132 (R)-1 amending FAS 132 disclosure provisions
    The FSP amends FASB Statement No. 132(R), employer’s disclosures about pensions and other postretirement benefits, to require additional disclosures about assets held in an employer’s defined benefit pension or other postretirement plan. Our Hot Topic summarizes the FSP’s provisions.

    5 December 2008

    Hot Topic - Pensions and OBEPs: Current economic environment and assumed discount rate considerations
    Our Hot Topic addresses frequently asked questions surrounding the effect of the current economic environment on assumed discount rates used to determine employers’ pension and other postretirement benefit obligations.

    3 June 2008

    Hot Topic - FASB Statement No.158 -Year 2 implementation issues
    Our Hot Topic focuses on the accounting and reporting for pension and postretirement health plans under Statement 158 including transition provisions and related disclosure requirements.

    2 May 2008

    Comment Letter - FASB Proposed FSP FAS 132R-a-pension disclosure matters
    This comment letter provides our views on the FASB proposed FSP on pension disclosure matters.

    7 December 2007

    Hot Topic - Actuarial assumptions - How do you estimate discount rates?
    Our Hot Topic discusses various considerations for determining assumed discount rates since the discount rate assumption can significantly affect the determination of the funded status of a company's pension or other postretirement benefit plan.